Muslim villagers in India could face up to life in prison after they were arrested and charged for celebrating Pakistan's victory in the Champions Trophy.

India's cricketers suffered a historic defeat at the hands of their arch-foe on Sunday, leaving fans across the country dejected - but a group in the Burhanpur district of Madhya Pradesh drew complaints for 'setting off fireworks' in jubilation.

Police said that 15 villagers, who were also said to be chanting Pakistani slogans, were arrested and charged with sedition - punishable by life in prison - as well as criminal conspiracy.

Pakistani youngsters cheer while watching the Champions Trophy final cricket match between Pakistan and India, on a big screen in Lahore, Pakistan

Indian cricket supporters react as Pakistan won the ICC Champions Trophy final cricket match against India, in New Delhi

Indian cricket supporters react after Pakistan won the ICC Champions Trophy final cricket match against India, in New Delhi

'We received a complaint from a local Hindu man who accused them of celebrating after India lost the match,' Burhanpur police chief Raja Ram Parihar told AFP.

The officer said the celebrations continued for hours in the sensitive locality.

The village has a large Muslim population and a history of communal clashes between the two communities.

An image of a spectator at The Oval wearing a t-shirt with the slogan 'winner takes Kashmir' swept social media

Pakistan's Sarfraz Ahmed lifts the trophy as Pakistan players celebrate their win at the presentation after the ICC Champions Trophy final cricket match between India and Pakistan at The Oval

The celebrations there on Sunday echoed scenes across Pakistan, as well as Indian Kashmir, where the 180-run victory was met with defiant pro-Pakistan chants from supporters waving the national flag and setting off fireworks.

But the sporting celebrations quickly sparked violence in Srinagar, the summer capital of the Indian Jammu and Kashmir state, which is majority Muslim.

Residents accused officers of India's Central Reserve Police Force of smashing cars and beating up people for celebrating Pakistan's win.

Kashmiri Muslims shout pro-pakistan slogans as they celebrate after Pakistan won the Champions Trophy, in Srinagar

Pakistani cricket fans celebrate their team's victory in the Champions Trophy final against India, at a street in Lahore, Pakistan

Pakistani cricket fans in Lahore celebrating the victory into the night on Sunday

At The Oval in London, where the match took place, a controversial photo of one spectator wearing a t-shirt bearing the slogan 'Winner takes Kashmir' swept social media. Indian fans departed the legendary cricket ground in their droves.

Rival fans were also seen chanting and throwing objects at each other on the streets in the UK, as celebrations went global.

Meanwhile, there was a sombre mood among India fans - in Delhi some of them left screenings of the match early after screaming anti-Pakistan slogans, despite the team being praised for being gracious in defeat.

The stunning turnaround in the match gripped Pakistan's nation of 190 million people

Pakistan donned a set of white jackets as they celebrated winning the Champions Trophy

Passions run high over cricket in India - particularly when it comes to arch-rival Pakistan.

Cricket fans in both countries have been arrested in the past for supporting the rival teams or players.